What if someone said that you get to start every day with $1440 credited to your bank account? And you could spend those dollars how you liked, the choice was completely yours. You could use them all to buy one big thing, or you could spend on lots of little things.
The only negative is that you can’t save any of those dollars for the next day. You have to spend them all, or they get wiped out and you begin the next day with another $1440.
How would you spend it? I bet you would carefully plan out where each dollar would go, trying not to waste any of it. After all, money is a precious resource.
Do you know what else is a precious resource?
Time.
Time is a finite thing. There is only a certain amount of it in each day.
Every day you get given the gift of 1440 minutes. How do you choose to spend those? I can almost guarantee you don’t meticulously plan your time like you would your dollars.
Why is time different to money? Why do we plan our cash spending, but not our time spending?
When it comes to business, your time is money. So, let’s look at why you should care what your time is worth, how you can formulate the value of your time, and how you can make the most of it.
Why You Should Care About What Your Time Is Worth
Like I just said, your time is precious. There are only so many hours left in the day to work on your business once you remove the time needed to sleep, eat, shower, spend time with your loved ones, and service your commitments.
The time you waste on unimportant, or unnecessary tasks is time that you could be spending on what you do best. Instead of trying to think up ideas for your newsletter or finding something to post on social media, you could be assessing and converting leads to clients.
The process of making sales takes time. As you know, it doesn’t just happen by magic. Valuing your time is the first step towards increasing your sales and growing your business. If you know how long it takes for you to go through the process of converting a lead, then you will truly know what your time is worth.
Formulate Your Value
Placing a monetary value on your time can really help you to be more conscious of it, and to make the most of every minute that you have at your disposal. But how can you put a value on time?
In order to assign a value to your time, you need to know two things…
- The average lifetime value of one of your customers
- Your sales conversion rate
Once you have those two pieces of information, you can work out the value of your time. Your formula is…
Lifetime Value of a Customer x Sales Conversion Rate = Opportunity Value of time
Let’s put it into a practical example so you can see how it works.
Say the average lifetime value of your customers is $2500. And you convert 1 out of every 4 leads, making your sales conversion rate 25%. $2500 multiplied by 25% works out to be $625. So the value of each opportunity that you are presented with would be $625.
So, every time you sit down with a potential client at a sales meeting, it is a $625 opportunity. You obviously want to dedicate as much of your time to these valuable opportunities as you can. That is how you are going to bring the revenue into your business after all.
Then you need to consider all those other tasks that you need to do in the day, the ones that take you away from those client meetings. Things like admin, producing a newsletter, posting on social media, creating branded content. Sure, they are tasks that need to be done, but do you need to do them yourself?
That brings me to my next point…
Delegate Routine Tasks To Inhouse Staff Or Outsource To The Experts
Now you know the value of your time, you know what your focus should be. You need to be interfacing with your clients bringing in the dollars, not fluffing about trying to write emails on your computer.
All business owners need to stick to what they are good at doing. That is why you will never find me under the bonnet of a car, because it is not my gift. My value comes from what I know – marketing strategy and implementation.
To allow me to focus on my area of genius, I outsource the non-essential parts of my business. They are things that need to be done to keep my business running smoothly, but I don’t need to reconcile my bank account, my bookkeeper does it for me. Likewise, I don’t need to upload articles and videos to my website, because my virtual assistant does it for me.
Delegate those non-essential tasks to someone in your team, or outsource them to an expert to make sure they are done right. Then you can focus on those $625 opportunities instead of wasting 2 days every month trying to piece together a newsletter.
Your newsletter is a vital component of your marketing strategy, but trying to handle it yourself can be a massive waste of your time. If you would rather be servicing the $625 opportunities, then why don’t we chat about your company’s newsletter? My team can take the burden off your hands so that you can focus on what you do best.
Book your free 30-min strategy call with me now and we can discuss how best to spend your time currency to convert it to dollars.